Published On: Fri, Feb 24th, 2017

Midday Market Review

InstaForex

Today US dollar was traded in different directions against its competitors.

In the pair with the euro dollar was gradually weakening, the price is testing the 1.0600 level, but is not able to break it yet.

The GBP/USD pair is located at the opening of trading level and is moving in a narrow range of 1.2530-1.2560.

Against the yen, the US dollar lost 0.35%, reaching 112.30. The dollar was affected by a comment of the Chinese Foreign Ministry spokesman Geng Shuang that China does not intend to seek trade advantages using the devaluation of the yuan.

Against the Australian dollar, US dollar lost 0.41% and went to 0.7680.

Today, traders are waiting for the publication of the US consumer confidence index (forecast of growth to 96.1 points) and a report on new home sales in the US (expected to increase to 575K), which can provide support to the US currency.

Metals continue to grow and have already climbed to the highest level since November, gold – to the level of 1257.90 (+0.74%) and silver – to the level of 18.31 (+0.93%).

Oil prices have now come to a pullback from the upper border of the sideways channel. Quotes of Brent decreased to 56.25, and WTI – to 53.95. In general, the situation on the oil market is negative: while some exporters (mainly OPEC) cut production, others, who do not participate in OPEC’s agreement, use higher prices to increase production. Thus, according to the latest report by the EIA, for the past week, oil production in the US increased to 9 million barrels.

European and US indices are being corrected from annual maximum: DAX lost 2.42% (down to 11735.0), CAC40 fell by 1.52% (to 4812.0), FTSE100 – by 0.83% (to 7206.0), DOW – by 0.41% (to 20115.0), and S&P500 – by 0.39% (to 2350.0).

Forex Analysis

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